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 Understand
 The relationship of physician revenue to pay
 The relationship of practice expenses to pay
 Become famili...
Revenue Expenses Pay
Revenue Expenses Pay
Changes in the medical practice environment have made this
relationship less direct and easy to under...
Revenue Expenses Pay
Primarily billing
for
patient services
Expenses
40%
Compensation
60%
Internal Medicine Hospitalist, MGMA Survey, 2013
Expenses
61%
Compensation
39%
Internal Medicine, MGMA Survey, 2013
Revenue Expenses Pay
More than half of
the revenue
Model used by 75% of practices in 2012/2013 Merritt Hawkins Survey
Quality bonuses in 39% of practices in 2012/2013 Merritt Hawkins Survey
 Cases/Patient Visits
 Collections for medical services
 Relative Value Units (RVUs)
 Arbitrary units set by Medicare ...
Merritt Hawkins Physician Compensation Report, 2013
Initial
Inpatient
Evaluation
CPT Code
Medicare
Allowable
Charge
RVUs
Level 3 99223 $204 3.86
Level 2 99222 $138 2.61
Level...
 You need to know a few facts about your
specialty
 Workload (patients/cases per year)
 RVUs
 Collections
 Unfortunat...
Medical Group Management Association
$730 for non-members
Annual survey of over 60,000 physicians
Used by many practices t...
 RVUs
 Charges
 Collections
 Patient encounters
 Compensation
 Bonuses
 Vacation
 Region
 Practice setting
 Group ownership
Specialty Mean RVUs 25th % Median 75th %
Family Medicine 4,962 2,776 3,804 4,835
Internal Medicine 4,999 2,883 3,774 4,705...
Specialty Mean 25th % Median 75th %
Family Medicine 4,295 2,238 3,009 3,920
Internal Medicine 3,645 1,854 2,542 3,402
Hosp...
Specialty Mean 25th % Median 75th %
Family Medicine $226,000 $142,000 $170,000 $207,000
Internal Medicine $225,000 $148,00...
Free
$249
Model used by 75% of practices in 2012/2013 Merritt Hawkins Survey
 Key relationships
 Revenue – Expenses = Pay
 Base + Production = Pay
 Know the value of your services
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
How are physicians paid?
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How are physicians paid?

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Learn the relationship between physician productivity and physician pay to better understand how the healthcare system works. Factors like practice expenses and bonuses are also discussed.

Published in: Healthcare
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How are physicians paid?

  1. 1.  Understand  The relationship of physician revenue to pay  The relationship of practice expenses to pay  Become familiar with  Basic physician compensation models  Physician productivity
  2. 2. Revenue Expenses Pay
  3. 3. Revenue Expenses Pay Changes in the medical practice environment have made this relationship less direct and easy to understand.
  4. 4. Revenue Expenses Pay Primarily billing for patient services
  5. 5. Expenses 40% Compensation 60% Internal Medicine Hospitalist, MGMA Survey, 2013
  6. 6. Expenses 61% Compensation 39% Internal Medicine, MGMA Survey, 2013
  7. 7. Revenue Expenses Pay More than half of the revenue
  8. 8. Model used by 75% of practices in 2012/2013 Merritt Hawkins Survey
  9. 9. Quality bonuses in 39% of practices in 2012/2013 Merritt Hawkins Survey
  10. 10.  Cases/Patient Visits  Collections for medical services  Relative Value Units (RVUs)  Arbitrary units set by Medicare for the value of healthcare services
  11. 11. Merritt Hawkins Physician Compensation Report, 2013
  12. 12. Initial Inpatient Evaluation CPT Code Medicare Allowable Charge RVUs Level 3 99223 $204 3.86 Level 2 99222 $138 2.61 Level 1 99221 $102 1.92 2014 Medicare Physician Fee Schedule, National Payment Amount, Accessed
  13. 13.  You need to know a few facts about your specialty  Workload (patients/cases per year)  RVUs  Collections  Unfortunately, you will not find these answers in PubMed or UpToDate.
  14. 14. Medical Group Management Association $730 for non-members Annual survey of over 60,000 physicians Used by many practices to develop compensation models
  15. 15.  RVUs  Charges  Collections  Patient encounters  Compensation  Bonuses  Vacation
  16. 16.  Region  Practice setting  Group ownership
  17. 17. Specialty Mean RVUs 25th % Median 75th % Family Medicine 4,962 2,776 3,804 4,835 Internal Medicine 4,999 2,883 3,774 4,705 Hospitalist (IM) 4,461 2,236 3,209 4,298 MGMA Survey, 2013 Distributions skewed towards higher RVUs
  18. 18. Specialty Mean 25th % Median 75th % Family Medicine 4,295 2,238 3,009 3,920 Internal Medicine 3,645 1,854 2,542 3,402 Hospitalist (IM) 2,413 1,038 1,586 2,219 MGMA Survey, 2013 Distributions skewed towards higher Patient Encounters per Year
  19. 19. Specialty Mean 25th % Median 75th % Family Medicine $226,000 $142,000 $170,000 $207,000 Internal Medicine $225,000 $148,000 $178,000 $224,000 Hospitalist (IM) $253,000 $183,000 $211,000 $240,000 MGMA Survey, 2013 Distributions skewed towards higher Compensation
  20. 20. Free
  21. 21. $249
  22. 22. Model used by 75% of practices in 2012/2013 Merritt Hawkins Survey
  23. 23.  Key relationships  Revenue – Expenses = Pay  Base + Production = Pay  Know the value of your services

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